Melaka: Melaka's fiscal position remains sound, with control measures being implemented within the existing budget framework amid the global supply crisis following the conflict in West Asia, the State Legislative Assembly sitting was told today. Chief Minister Datuk Seri Ab Rauf Yusoh said that, therefore, the state government had no plans to table a mini budget, but would instead optimise expenditure, reduce operating costs and implement more targeted programmes to ease the impact on the people.
According to BERNAMA News Agency, Ab Rauf emphasized that the state government would continue to assess the current situation from time to time and is committed to working closely with the federal government to ensure that every intervention measure implemented is effective and delivers optimal impact on the well-being of the people as well as the stability of the state economy. He made these remarks in response to a question from Low Chee Leong (PH-Kota Laksamana) regarding the potential introduction of a Melaka Mini Budget 2026 to address the global energy crisis following the conflict in West Asia.
Ab Rauf further elaborated that under the existing budget, the state government had set aside RM300,000 to safeguard rice supply security. Part of this allocation is directed towards an additional one-off Ploughing Incentive of RM30 per 0.4 hectare this year, covering a total of 607 hectares of padi fields, to assist rice farmers affected by the energy supply crisis. Additionally, the state government allocated RM300,000 for the development of cooperatives in several clusters, including manufacturing, micro, small and medium enterprises, and kariah masjid. This initiative emphasizes empowering cooperatives, supporting the continuity of existing programmes, and strengthening their role in boosting Melaka's economy.
Local authorities have also introduced measures to alleviate financial burdens on businesses. These include offering one month of free rental or a 30 per cent discount to tenants of business premises owned by state government subsidiaries, involving an estimated cost of RM2.8 million. Furthermore, a 50 per cent discount on hawker licence renewals for small traders in all PBT administrative areas has been implemented.
The state government also introduced the Melaka PBT Special Incentive, which allows for the extension of Planning Permission without requiring a new application if submitted within 12 months of the original approval's expiry. Applicants are charged a penalty of only 50 per cent of the original fee, thereby reducing both costs and processing time. Other incentives include full exemption of construction deposit for new building plans, extension of the validity period of Form B for plans approved in 2026, compound reduction of up to 80 per cent for non-court cases, and lower service charges for property assessment tax, benefiting the people of Melaka.